In six years, U.S. Public debt has increased from 4 trillion to 10 trillion dollars. With the US government pushing for a bailout to buy the bad debt of bankrupt “private” financial corporations compounded with the additional $634 billion spending bill (passed 78-12 vote) now sent to George W Bush for signing, the US debt will be almost 11.5 trillion dollars. David M. Walker, Comptroller General of the US and head of the Government Accountability Office, in his December 17, 2007, report to the US Congress on the financial statements of the US government noted that “the federal government did not maintain effective internal control over financial reporting (including safeguarding assets) and compliance with significant laws and regulations as of September 30, 2007.”
The GAO report states accrued liabilities of the federal government “totaled approximately $53 trillion as of September 30, 2007.”
No funds have been set aside against the liability. The estimated net worth of all American families is about $47 trillion, reducing as property values reduce.
The US is bankrupt!
If the US Congress is weak enough and stupid enough to give $700 billion of federal funding to “private” corporations who have made themselves bankrupt with bad and unethical trading practices then there is no doubt that the US will itself be filing for bankrupt very soon.
The debt limit and why is it important?
Since 1941, Congress has established in law the maximum amount of debt the federal government may issue. The Treasury does not have legal authority to issue any debt above this statutory limit. To avert a default on its credit obligations or a shutdown of government operations, occasionally it is necessary to raise the limit. The current Debt Limit was increased from $9.815 trillion to $10.615 trillion effective July 30, 2008. If the US Congress bails out the “private” financial corporation the Debt Limit will be exceeded, which the US Congress has no legal authority to issue. When the debt limit is exceeded the government is bankrupt.
There is a fundamental difference between “paying” and “discharging” a debt. To pay a debt, you must pay with value or substance (i.e. gold, silver, barter or a commodity). With FRNs, you can only discharge a debt. You cannot pay a debt with a debt currency system. You cannot service a debt with a currency that has no backing in value or substance. No contract in Common law is valid unless it involves an exchange of “good & valuable consideration.”
With the usual misdirection, the press reports plummeting Wall Street stock prices as if they mattered to ordinary people. In fact, as economist Dean Baker has repeatedly pointed out “The stock market is not a good barometer of the economy’s health. “It can be driven up as a result of a redistribution from wages to profits, or simply as a result of irrational exuberance. “Neither is good for the economy as a whole, although anything that pushes up stock prices is obviously good news for the small minority of people who own substantial amounts of stock.”
Unwittingly, America has returned to its pre-American Revolution, feudal roots whereby all land is held by a sovereign and the common people had no rights to hold allodial title to property. Once again, We the People are the tenants and sharecroppers renting our own property from a Sovereign in the guise of the Federal Reserve Bank. We the people have exchanged one master for another. This has been going on for over eighty years without the “informed knowledge” of the American people, without a voice protesting loud enough. Now it’s easy to grasp why America is fundamentally bankrupt.
Why don’t more people own their properties outright?
Why are 90% of Americans mortgaged to the hilt and have little or no assets after all debts and liabilities have been paid? Why does it feel like you are working harder and harder and getting less and less?
We are reaping what has been sown, and the results of our harvest is a painful bankruptcy, and a foreclosure on American property, precious liberties, and a way of life. Few of our elected representatives in Washington, D.C. have dared to tell the truth. The federal United States is bankrupt. Our children will inherit this unpayable debt, and the tyranny to enforce paying it.
America has become completely bankrupt in world leadership, financial credit and its reputation for courage, vision and human rights. This is an undeclared economic war, bankruptcy, and economic slavery of the most corrupt order!
Who is to blame?
Article One of the United States Constitution describes the powers of the legislative branch of the United States government, known as Congress, which includes the House of Representatives and the Senate.
The US Constitution Article 1 Section 8: Powers of Congress clearly state that Congress has the sole power:
- To borrow money on the credit of the United States;
- To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;
- To establish a uniform rule of naturalization, and uniform laws on the subject of bankruptcies throughout the United States;
- To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;
- To provide for the punishment of counterfeiting the securities and current coin of the United States;
Nowhere does it state that the US Congress has the power to “print” money. Legal tender has always been “coin” money and every time the US Federal Reserve simply “prints” notes they are injecting counterfeit money into the system. Counterfeiting is the production of documents by legitimate printers in response to fraudulent instructions. Today, the finest counterfeit banknotes are the U.S. dollar bills - because they are not coined and they are not backed by equal value coin money.
Some of the ill-effects that counterfeit money has on society are:
1. Reduction in the value of real money
2. Increase in prices (inflation) due to more valueless money getting circulated in the economy - an unauthorized artificial increase in the money supply
3. Decrease in the acceptability (satisfactoriness) of money - payees may demand electronic transfers of real money
4. Increase prices of commodities
A federal Reserve Note Swindle.
The swindle of the system is simple. The Federal Reserve Bank hires the US Treasury to print up some money. The Federal Reserve only actually pays the treasury for the cost of the printing, they do NOT pay $1 for each 1$ printed. But the Federal Reserve turns around and loans out that money (or credit line) to banks at full face value, those banks which have exhausted their deposits then loan that Federal Reserve fiat money to you, and you must repay it in the full dollar value (plus interest) in work product, even though the Federal Reserve printed that money for pennies, or created it out of thin air in a computer.
As the Federal Reserve overprints more money, the money supply inflates, and too much money starts chasing too few goods and services, which means prices go up. But contrary to the charade put on by the Federal Reserve, inflation doesn’t just come and go due to some arcane sorcery. The Federal Reserve can halt inflation any time it wants to by simply shutting down those printing presses. It therefore follows that both inflation and recession are fully under the control of the Federal Reserve. This means the cycle of inflation and recession is an intentional one; a gigantic heartbeat that pumps paper certificates out to the working class, while pumping real wealth in to the owners of the banks.
Over time, that excess of printing has destroyed the value of that dollar you think you have.
It should be noted that the banks themselves are still using the gold standard. Accounts are still settled between major national banks by the transfer of gold bullion.
So here we are with a bank that legally counterfeits the money you borrow but expects a full value (plus interest) repayment. But what’s good for the Federal Reserve is good for the government itself, and this is where we get back into that funny word “deficit spending”. The government spends more money than it takes in. It has for many years now. The Federal Reserve, being the only lawful source of this fiat money, prints up the excess cash the government needs (or manufactures a credit line in a computer). This extra cash is treated as a loan, in order to keep the government overspending from further eroding the worth of the dollar in the world market. The government (meaning the taxpayers) is on the hook for the full face value, plus interest.
But there’s another problem. The government is borrowing so much money that it drives the interest rates up! You pay MORE interest on your mortgage, car loan, and credit cards, because the government cannot balance its books. That extra interest you pay is therefore another hidden tax. The government, in its “generosity”, gives you a tax credit on mortgage interest that is higher because of their own borrowing!
In short, the United States is in deep trouble. It has lost a huge amount of manufacturing capacity, and those products they still make do not compete well on the world market, despite the steady devaluation of the dollar. In short they have vast debts to pay and little to pay them with. Like the foolish Farmer we have sold the machinery that allowed us to prosper, and we stand around shaking our investment portfolios back and forth in the hopes that the money inside will somehow grow all by itself. It won’t. It never has. The very best that can be said is that money gets moved from one person to the other.
Those nations and banks to whom the US owes money have been very patient indeed with the US. They know that our economies are so tightly entwined that what hurts America will hurt them. But sooner or later, possibly after a market crash, someone, in order to pay their own debts, will demand their loans to the United States be paid. Rather than get caught with “bad paper”, there will be a run on the United States government.
In addition to the government debt, US businesses are home to trillions more in foreign investment, kept here by the promise that the American taxpayer will be made to cover all losses. But with our manufacturing in decline and our schools producing far more lawyers than anything else, it should be obvious to the prudent observer that the American taxpayer, even if so inclined, may not be able to cover the losses of their own government, let alone a foreign investor. That has to be making them nervous as well.
This brings us to the “equities markets”, most notably the stock market. Over the last several years a constant media harangue has assured us that the soaring numbers of the stock market are the sole measure of how good our economy is. But close examination of those high-priced stocks reveals that most are heavily over-valued; their price the result of market forces rather than underlying worth (earnings ability).
The government has admitted to using covert means to prevent a market downturn; to keep the stock prices at an artificially high and overvalued level, in order to wave those impressive numbers about as “proof” that everything is okay so that the taxpayers go back to work and pay more taxes. But in order to keep those stock prices up above their actual worth, demand must be maintained to keep the prices high. In other words, NEW investors must constantly be brought into the bottom of the pyramid to keep the prices of the stocks at the top from dropping. Hence the onslaught of commercials luring neophyte investors into the stock market via “online trading”. Like any Ponzi scheme, the stock market will collapse when no more new buyers can be dragged in at the bottom. As the market starts to stutter, governments (most recently Britain) have moved to dump huge reserves of gold onto the world market to depress gold prices and deter investors from deserting the stock market for gold.